Euroasig files for bankruptcy

Insurance watchdog, the Supervisory Commission of Insurance (CSA), decided on November 25, that the Warranty Fund should absorb the toxic insurance policies of Euroasig insurer, which is currently in recovery mode, as the insurer will initiate the bankruptcy proceedings, after the recovery measures failed.

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Under the legal provisions, CSA decided to “declare the insolvency of Euroasig and to run the bankruptcy proceedings against it”.

“Despite all the efforts, the measures applied in the course of financial recovery procedure, have not achieved the purpose and did not remove the causes that generated them, the financial situation of the company failing to be restored, and therefore, the insured persons’ rights and legitimate interests being exposed to high risks”, said the officials of Insurance watchdog.

The company is obliged to deliver to the Warranty Fund the full records of files, and the account books afferent to these files, in order to make public the list of possible creditors in the insurance system who are entitled to collect money from Warranty Fund.

Euroasig company said it had investors in Israel, France, and Romania, such as Grawe Romania, that were willing to buy the company, but the distress on stocks hindered any type of transaction, said Nicolae Crisan, administrator of the company, NewsIn informs.